Gold Investing: The price is right

Posted January 15, 2008

"One expert from Commerzbank International in Luxembourg, suggested a high for the year of $900. I don't know what planet he's on - but that got breached before 2008 was two weeks old, in fact on the very day that the LBMA released their forecast." — Dominic Frisby.

Blogger's note: The London Bullion Market Association has kicked off its 2008 gold price prediction competition. Dominic Frisby of Money Week has an interesting take on this year's entries. And I thought you'd appreciate the chance to get his perspective. You can find the article here or read on for more.

by Dominic Frisby

Baltimore – (TFN): This week the London Bullion Market Association (LBMA) released the forecasts of 28 precious metal experts in its annual competition.

Most years, Ross Norman of The Bullion Desk wins - and most years he makes the most bullish forecast. He has again this year. He reckons gold will hit a high of $1,250 an ounce before the year is out, and won't sink below $840.

Meanwhile, one expert from Commerzbank International in Luxembourg, suggested a high for the year of $900. I don't know what planet he's on - but that got breached before 2008 was two weeks old, in fact on the very day that the LBMA released their forecast.

But he's not the only expert who seems to be out of touch with the real world…

Over 40% of the participants in the LBMA gold price forecasting competition do not expect to see gold hit $1,000 an ounce. Only three of the 24 (12.5%) see highs above $1,050. I wonder how many of these people look at money supply growth figures. Mark my words, Norman will come first or second in this competition yet again. Gold will break $1,100 this year. The surprises in this gold bull market have always been on the upside. And you may be surprised where the gains will be in the coming year. Read on to learn how you can find profits in the gold bull market.

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